FNB encourages savings, rather than loans
FOR most Namibians it is back to school and back to work after the festive season. After the great indulgence, it seems as if many are now looking at ways and means to cover up their over-spending and to try and get out of debt.
Herman Reinders, Area Manager for the Windhoek Central Area at FNB Namibia, said that the ?credit crunch? experienced from 2008 to 2010 had a definite spill over into 2011. The appetite for risk is still high amongst consumers.
He added: ?The most typical type of borrowing is basically vehicle or asset finance as well as personal and study loans. When clients apply for these loans, FNB Namibia follows the normal qualifying criteria which means that the client has to fill out an application form and provide proof of identification and income. A credit check is then done and assessment takes place with regard to affordability and solvency.
?Repayment of study loans is determined over the period of which the specific course is taken. Students (usually) need to provide some sort of ?collateral? in the form of surety which is usually undertaken by parents and/or sureties. Personal loans are usually granted over a maximum term of 60 months (5 years). Repayments are done by monthly debit orders on salary date, and for Government loans and schemes, deductions are made from the paying office.?
Dawn Humphries, Communications Manager at the bank, stated that FNB Namibia would like to encourage clients to start saving early this year in order to avoid accumulating debt in the holidays.
?We advise clients to arrange for monthly savings with one of our excellent savings products such as Unit Trusts, 32 days account or the Bank-yourchange option, but if these options are not in place, most clients settle for overdrafts during January because it provides additional cash flow.?
She added: ?It is imperative that we try and encourage a savings culture amongst Namibians. We are well aware that debt is too easy to come by and would also like to heed the call of government towards encouraging our people to save rather than become indebted. That is why we, at FNB Namibia, have numerous products that suit all Namibians and we hope that 2012 will be a savings year for our clients.?
Herman Reinders, Area Manager for the Windhoek Central Area at FNB Namibia, said that the ?credit crunch? experienced from 2008 to 2010 had a definite spill over into 2011. The appetite for risk is still high amongst consumers.
He added: ?The most typical type of borrowing is basically vehicle or asset finance as well as personal and study loans. When clients apply for these loans, FNB Namibia follows the normal qualifying criteria which means that the client has to fill out an application form and provide proof of identification and income. A credit check is then done and assessment takes place with regard to affordability and solvency.
?Repayment of study loans is determined over the period of which the specific course is taken. Students (usually) need to provide some sort of ?collateral? in the form of surety which is usually undertaken by parents and/or sureties. Personal loans are usually granted over a maximum term of 60 months (5 years). Repayments are done by monthly debit orders on salary date, and for Government loans and schemes, deductions are made from the paying office.?
Dawn Humphries, Communications Manager at the bank, stated that FNB Namibia would like to encourage clients to start saving early this year in order to avoid accumulating debt in the holidays.
?We advise clients to arrange for monthly savings with one of our excellent savings products such as Unit Trusts, 32 days account or the Bank-yourchange option, but if these options are not in place, most clients settle for overdrafts during January because it provides additional cash flow.?
She added: ?It is imperative that we try and encourage a savings culture amongst Namibians. We are well aware that debt is too easy to come by and would also like to heed the call of government towards encouraging our people to save rather than become indebted. That is why we, at FNB Namibia, have numerous products that suit all Namibians and we hope that 2012 will be a savings year for our clients.?
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